Morgan Stanley Advisor Charged with Fraud for Stealing Millions from Investors
By Attorney Jared Levy
The securities attorneys at Morgan & Morgan are investigating the alleged theft of client funds by a former registered representative and investment advisor of Morgan Stanley.
The Securities and Exchange Commission charged Michael B. Carter with fraud based on allegations that he stole millions of dollars from brokerage and advisory customers. When the thefts allegedly occurred, Carter was working for Morgan Stanley as a financial advisor in the firm’s McLean, Virginia office.
According to the SEC, Carter made millions of dollars of unauthorized wire transfers from client brokerage accounts to his personal bank account and falsified internal documents to hide this. The SEC alleges that Carter sold client securities without authorization to generate some of the funds that he transferred.
According to Marc P. Berger, director of the SEC’s New York Regional Office, Carter took advantage of his clients’ trust for his personal gain.
Berger stated: “As a financial advisor, Carter was entrusted with millions of dollars belonging to his brokerage customers, his advisory clients, and their families.”
The SEC’s complaint alleges that Carter diverted client account statements to addresses he controlled in order to conceal the transfers. According to the SEC, Carter used the misappropriated funds to fund his lavish lifestyle.
The SEC charged Carter with violations of the anti-fraud provisions of the Securities Exchange Act of 1934 and the Investment Advisers Act of 1940. The U.S. Attorney’s Office for the District of Maryland also announced criminal charges against Carter, to which Carter plead guilty to those charges.
If you held accounts with Morgan Stanley or Michael Carter, you may have legal claims to recover any misappropriated funds. Contact one of our experienced securities attorneys at 888-744-0142 to discuss your claims.
Our securities attorneys are part of the largest contingency law firm in the nation, with more than 500 lawyers and 50 offices. We regularly battle against brokerage firms, investment advisory firms, and banks, and have helped investors recover tens of millions of dollars of investment losses.